Security code

2nd FP (ended June 2018)

Presentation Materials目次
1. F i n a n c i a l H i g h l i g h t s ・ ・ ・ P. 2
Financial Highlights of 2 nd FP・ ・ ・ ・ ・ P. 3
Portfolio Performance・ ・ ・ ・ ・ ・ ・ ・ ・ P. 4

2. Major Topics for 2nd FP・・・ P.6

IPO Highlights・・・・・・・・・・・・・・ P.7
Portfolio・・・・ ・・ ・・ ・・・・・・・P.8

3. Overview of Follow-on Offering(August 2018)・・・・・・・・・ P.9

Characteristics of PV Plant Revenue・・・P.23

6. Appendix・・・・・・・・・・・・P. 24

TSE Listed Infrastructure Fund Market・・・・P. 25
Japanese Renewable Energy Market・・・・・P. 26
Renewable Energy Curtailment・・・・・・・P. 27
Overall Structure・・・・・・・・・・・・・P. 28
Disclaimer・・・・・・・・・・・・・・・P. 29

A n t i c i p a t e d A c q u i s i t i o n s ・・・・・・・P.11
P o s t - O f f e r i n g P o r t f o l i o ・・・・・・・P.12

4. CSIF’s Unique Features・・・ P.13

Overview of Sponsor・・・・・・・・・P.14
Vertically-integrated Business Model・・・P.15
Strong Financial Base・・・・・・・・・・P.16
Leasing Structure・・・・・・・・・・・・・P.17
Distribution Policy (Payout Ratio)・・・・P.18
Green Bond・・・・・・・・・・・・・・P.19

5.M a n a g e m e n t P o l i c y ・ ・ ・ ・ P. 2 0
3 rd 4 th & 5 th FP Business Forecast・・・・P.21
External Growth Strategy（Sponsor
P i p e l i n e ） ・ ・・ ・ ・ ・ ・ ・・ ・ ・・ ・ ・ P. 2 2

1

1. Financial Highlights

2nd FP Financial Highlights
Major deference factor（2）2nd FP (ended June 2018) （1）Forecasted
Earnings(press release
as of Oct 30, 2017)

Forecasted
Earnings(press release
as of June 20, 2018)(million yen)

ActualYOY（2）

Operatingrevenues

Statement of Income Data
(million yen)

Operating revenues

1,915

1,964

2,023

+5.6%

Operating income

684

828

845

+23.5%

Income before income taxes

125

277

331

+165.4%

Net income

124

276

330

+165.8%Distribution per unit
(including distributions in excessof earnings) (yen)

2,047

2,350

2,350

+14.8%

Distributions per unit
(excluding distributions in excessof earnings) (yen)

420

1,271

1,542

+267.1%

Distributions in excess of earnings
per unit (yen)

1,627

1,079

808

-50.3%(Note-1) Fiscal period of the 2nd FP (ended June 2018) is from 1-Oct-2017 to 30-Jun-2018. However, given that the IPO was on 30Oct-2017, the actual operating period consists of 244 days.
(Note-2) Differential between forecast at the beginning of period versus actual performance.

Operatingexpenses

Performance-based rent
increase+65
Rent increase due to new
2 acquisitions+42
Depreciation expenses
decrease-28

Non-operating Investment unit issuance
expenses
costs decrease-43

2nd FP
distribution per unit
2,350 yen(press release as of Aug. 14,2018)

2nd FP
trend of forecasted DPU(excl. distributions in excess of earnings)

Press release- 2017/10/30
420 yen- 2018/6/20
1,271 yen
Actual
1,542 yen
+267.1% than original expectation

3

Portfolio Performance Total energy output(MWh)10,000

Projected

8,000

2nd FP actual energy output ÷ 2nd FP projected energy output = 103%
8,983 8,984

7,648

5,904 5,756

6,000

8,680 8,936

8,709

Actual
5,387

8,211

6,307 6,281

5,377 5,226

5,035

7,283

4,000
2,000
0

241

333

Oct.17

Nov.17

Dec.17Jan.18Feb.18Mar.18Apr.18May.18Jun.18 Energy output by project
(MWh)

S-13
6,000
CS Mashiki-machi Power Plant

千S-11
CS Minano-machi Power Plant

(MWh)

400
300

4,000

200
2,000

100

0

S-10 CS Minamishimabara-shi
Power Plant (East・West)

(MWh)

600

0
10月
11月
12月
1月
2月
3月
4月
5月
6月
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May.
Jun.
17
17
17
18
18
18
18
18
18

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

100
0
Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

(MWh)

(MWh)
S-06
400
CS Isa-shi Dai-san Power Plant

300

400

200

300

100

200

0

100
0

Nov.
11月
17

200

200

S-08
CS Hiji-machi Power Plant

Oct.
10月
17

300

400

0

S-09
CS Ashikita-machi Power Plant (MWh)
400

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

4

Portfolio Performance
S-03
CS Kasama-shi Power Plant

(MWh)

S-12
CS Kannami-cho Power Plant

300

(MWh)

200
150

200

100

100

50
0

S-07 CS Kasama-shi
Dai-ni Power Plant

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

0

Jun.
6月
18

(MWh)

300

S-02 CS Isa-shi Power Plant

100

100

50
Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

0

Jun.
6月
18

(MWh)

S-15
CS Tsuyama-shi Power Plant

300

100

100

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

0

Jun.
6月
18

(MWh)

S-14
CS Koriyama-shi Power Plant

300
200

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

300
200

Nov.
11月
17

Nov.
11月
17

(MWh)

200

Oct.
10月
17

Oct.
10月
17

150

200

0

S-05
CS Yusui-cho Power Plant

Nov.
11月
17

(MWh)

0

S-04
CS Isa-shi Dai-ni Power Plant

Oct.
10月
17

(MWh)

100

50

100
0

S-01
CS Shibushi-shi Power Plant

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

Oct.
10月
17

Nov.
11月
17

Dec.
12月
17

Jan.
1月
18

Feb.
2月
18

Mar.
3月
18

Apr.
4月
18

May.
5月
18

Jun.
6月
18

0

(MWh)

200
150
100

50
0

5

2. Major Topics for 2nd FP

IPO Highlights
 Overview of CSIF’s IPO

IPO of the largest listed
infrastructure fund

Offering format

Global Offering

Security Code9284

Listing date

October 30, 2017

Units offered

177,800 units

Offer price

JPY 100,000 per unit

Purchase Price

JPY 95,000 per unit

Total Purchase Price

JPY 16,891,000,000

Global Coordinator

Mizuho Securities Co., Ltd.

 Historical unit price

The first Global Offering

among the listed-infrastructure funds
Overseas Investors ratio on IPO

33.2％

Unit Price(left axis)(yen)
115,000

Outstanding(right axis)(units)

16,00014,000110,000

12,000105,000

10,000100,000

8,000
95,0006,000

90,0004,000

85,0002,000
080,0002017年10月30日
Oct.30 20172017年11月30日
Nov.30 20172017年12月31日
Dec.31 20172018年1月31日
Jan.31
20182018年2月28日
Feb.28 20182018年3月31日
Mar.31 20182018年4月30日
Apr.30 20182018年5月31日
May.31
20182018年6月29日
Jun.29 20187

Portfolio
 IPO acquisitions (Nov. 2017)
CS Mashiki-machi Power Plant (47.6MW)

CS Minamishimabara-shi
Power Plant (East & West)(3.9MW)

CS Hiji-machi Power Plant(1.9MW)

CS Minano-machi Power
Plant(1.9MW)

CS Ashikita-machi Power Plant(1.4MW)

CS Kasama-shi PowerCS Isa-shi Dai-san Power Plant(1.9MW)
Plant(2.1MW)

CS Kasama-shi Dai-niPower Plant(1.9MW)

CS Isa-shi Dai-ni Power Plant(1.9MW)

CS Yusui-cho Power Plant(1.5MW)

CS Shibushi-shi
Power Plant (0.9MW)

CS Isa-shi Power Plant (0.9MW)

CS Kannami-cho
Power Plant (1.3MW)

Number of Projects: 13projects
Solar Panel Output : 72.7MW
Acquisition Price: 30.43Bn

 Post-IPO acquisitions (Feb. 1, 2018)
CS Tsuyama-shi Power Plant (1.9MW)

CS Koriyama-shi Power Plant(0.6MW)

Number of Projects:2projects
Solar Panel Output :2.5MW
Acquisition Price:0.99Bn8

3. Overview of Follow-on Offering (Aug. 2018)

Overview of Follow-on Offering (Aug. 2018)
Consistent growth of the largest listed infrastructure fund in Japan sponsored by the Canadian
Solar Group developing business globally(Owned assets as at end of 2nd FP)

First listed infrastructure fund in Japan
with a portfolio exceeding

100MW (panel output)

Offering format

Reg-S Global Offering

Units offered

46,667

Total issue amount¥4,509,198,875

Issue price¥102,180

Announcement date

14-Aug-2018

Pricing date

29-Aug-2018

Global coordinator

Mizuho Securities Co., Ltd.

 Historical panel output

105.6MW

（MW）
120
100
2.5

80

30.3

60
40

72.7

# of projects

Total acquisition priceTotal panel output

15¥31.43Bn

75.3MW(Assets acquired as at Sept. 6)# of projects

Total acquisition priceTotal panel output

3¥11.53Bn

30.3MW(Portfolio after Sept. 6 acquisitions)# of projects

Total price(note)

取得パネル出力

18¥47.49Bn

105.6MW(Note) For owned assets as at the end of the 2nd FP, “Price” refers to the medianproject valuation report amount, which is the estimated values provided to us
by PricewaterhouseCoopers Sustainability LLC in its project valuation reports asof June 30, 2018. For assets purchased on 6-Sep-2018, “Price” refers to theacquisition price.

30.3
2.5
72.7

20
0

上場時取得資産Oct.
2017(IPO)上場後取得資産
Feb. 2018 取得予定資産
Sep.2018（2017年10月 ）（2018年2月 ）（2018年9月 ）

累計
Total

10

Anticipated Acquisitions
S-17 CS Daisen-cho Power Plants (A) & (B)

S-18

CS Takayama-shi Power Plant

Location

Takayamashi, Gifu

O&M

CSOM Japan

Panel output

962.28kW

Huawei Japan K.K.

# of panels

2,916

Power
converter

Output capacity

792.00kW

EPC

Kaneko Kogyo K.K.

FIT purchase price¥32/kWh

Land area

16,278㎡

FIT expiration

9-Oct-2037

Land rights

First year projected
capacity factor

Freehold,easement

11.54%

Panel type

Polycrystalline
siliconS-16

CS Ena-shi Power Plant

Location

Saihaku-gun, Tottori

O&M servicer

CSOM Japan

Location

Ena-shi, Gifu

O&M

CSOM Japan

Panel output

20,885.76kW (A), 6,416.64kW (B)2,124.20kW

65,268 (A), 20,052 (B)Toshiba Mitsubishi-ElectricIndustrial Systems Corporation

Panel output# of panelsPowerconverter

6,536

Power
converter

Power Electronics

Output capacity

15,750.00kW (A), 5,000.00kW (B)

EPC

Output capacity

1,320.00kW

EPC

XSOL Co., Ltd.

FIT purchaseprice¥40/kWh

Toshiba Infrastructure Systems &Solutions Corporation (formerly
Toshiba Corporation)# of panels
FIT purchaseprice¥32/kWh

Land area

37,373.0㎡

FIT expiration

9-Aug-2037

FIT expiration

12-Sep-2037

Land rights

Surface rights

First year
projected
capacity factor

11.18%First year
projected
capacity factor

13.08%

Panel type

Polycrystalline
siliconLand area

459,915.37㎡

Land rights

Surface rights, leasehold,easement

Panel type

Polycrystalline silicon

11

Post-Offering Portfolio
No.

Project nameLocation

Acquisition price(yen millions)Price (yenmillions) (note)

Investment
ratio (％)

Panel output
(kW)

S-01

CS Shibushi-shi Power Plant

Shibushi-shi, Kagoshima

540

609

1.28

1,224.00

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

404

0.85

931.77

S-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

1,097

2.31

2,127.84

S-04

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

778

837

1.76

2,013.99

S-05

CS Yusui-cho Power Plant

Aira-gun, Kagoshima

670

721

1.52

1,749.30

S-06

CS Isa-shi Daisan Power Plant

Isa-shi, Kagoshima

949

1,027

2.16

2,225.08

S-07

CS Kasama-shi Daini Power Plant

Kasama-shi, Ibaraki

850

907

1.91

2,103.75

S-08

CS Hinode-cho Power Plant

Hayami-gun, Oita

1,029

1,105

2.33

2,574.99

S-09

CS Ashikita-machi Power Plant

Ashikita-gun, Kumamoto

989

1,079

2.27

2,347.80

S-10

CS Minamishimabara-shi Power Plant (East & West)

Shimabara-shi, Nagasaki

1,733

1,954

4.12

3,928.86

S-11

CS Minano-machi Power Plant

Chichibu-gun, Saitama

1,018

1,173

2.47

2,448.60

S-12

CS Kannami-cho Power Plant

Tagata-gun, Shizuoka

514

585

1.23

1,336.32

S-13

CS Mashiki-machi Power Plant

Kamimashiki-gun, Kumamoto

20,084

23,391

49.25

47,692.62

S-14

CS Koriyama-shi Power Plant

Koriyama-shi, Fukushima

246

269

0.57

636.00S-15

CS Tsuyama-shi Power Plant

Tsuyama-shi, Okayama

746

802

1.69

1,963.00

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

757

757

1.59

2,124.20

S-17

CS Daisen-cho Power Plant (A) (B)Saihaku-gun, Tottori

10,447

10,44722.00

27,302.40

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

326

0.69

962.2842,96147,493100.00105,692.80

Total(Note) For owned assets as at the end of the 2nd FP, “Price” refers to the median project valuation report amount, which is the estimated values provided to us byPricewaterhouseCoopers Sustainability LLC in its project valuation reports as of June 30, 2018. For assets purchased on 6-Sep-2018, “Price” refers to the acquisition price.

12

4. CSIF’s Unique Features

Overview of Sponsor
 Canadian Solar Group’s History
Founded in Ontario, Canada, 2001
Listed on NASDAQ (CSIQ) in 2006
Over 12,000 employees globally
Presence in 18 countries/territories
2nd largest consolidated operating revenue
among American listed companies that
manufacture and sell PV module, etc.
3.3GWp solar power plants build andconnected globally (incl. recurrent)
Selected as the top PV module supplier by
HIS Markit’s PV Module Customer Insight
Survey 2016
Entered the Japan market in 2009 andestablished proven track record for shipping
PV modules. Achieved 100,000 residential
assets that install our PV module in March2018

 Canadian Solar Group’s Global Operations
As of March 31 2018
●Base of Sales◆Base of Manufacturing

CanadaU.S.
3 Mexico
4 Brazil
5 Germany
6 Spain7 Turkey
8 South Africa
9 UAE
10 India
11 Singapore
12 Japan
13 Korea
14 Australia
1
2

1

2

1

6

5

7

3
1 Canada
2 Brazil

３ China

４ Thailand

9
2

10

3
5
4

13

12

11 6

4
8

14

５ Vietnam

６ Indonesia

Source: Compiled by the Asset Manager
based on “Investor Presentation First Quarter2018 Update” by Canadian Solar Inc.

Canada (2009)

U.S. (2010)(*) There is no assurance that the CSIF can acquire the solar energy projects showed in
the above pictures in the future as of this writing.

14Vertically-integrated Business Model
GrowthPV plant
Acquire PV
plants

Project owner

CS Daisen-choPower Plant（A)Own and lease solar
energy projects

Canadian Solar Infrastructure Fund,
Inc.

ProvideO&M
services

PV plant
management

Lease PVfacilities
PV plantdevelopment

Canadian Solar Group (incl. sponsor)
Module
Cell

Wafer

Ingot
SiliconDeveloper
Canadian Solar Projects K.K.

O&M provider
Canadian Solar O&M Japan K.K.

15

Strong Financial Base Financial soundness attributed to fixed interest rate conversion and LTV controls
Type

Loan
outstanding(million yen)Interest rate

Interest rate
type

Drawdown date

Maturity

Longterm

15,700Base rate plus 0.45%(fixed at 0.845% upon executinginterest rate swap)

Fixed

31-Oct-2017

10 years from drawdown date
JCR Green Bond Evaluation

Longterm

2,040

Base rate plus 0.20%

Variable

31-Oct-2017

Earlier of (i) June 30, 2020 or (ii) firstinterest payment date after the consumption
tax refund date

Longterm

900

Base rate plus 0.45%

Variable

1-Feb-2018

3 years from drawdown dateTotal

18,640 Ratio of fixed-to-variable rate loans and LTV
Fixed-to-variableinterest rate ratio

LTV(as at end of June 2018)(as at end of June 2018)

83.94％(incl. consumption tax bridge loan)

44.67％(excl. consumption tax bridge loan)

50.34％(incl. consumption tax bridge loan)(Note-1) “Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities (incl. consumption tax bridge loan – the same
shall apply herein) as of this writing. Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap agreements weredeemed as fixed interest rate liabilities.
(Note-2) LTV refers to the loan-to-value ratio in accordance with our operational guidelines. Bridge loans were omitted from the LTV calculations. The most recent valuation
amount was used as the denominator for calculating LTV. LTV as at the end of June 2018 is 50.34% if consumption tax bridge loans are included in the calculation.

16

Leasing Structure Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

 Even if actual energy output is lower than projected energy output (P50), the operator will be able to receive basic rent from lessee
 If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

 Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs andoperator compensation)
Projected energy output (P50)
×FIT purchase price×Y％

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%
Variable rent

Projected energy output (P50)
×FIT purchase price × X%
×Y％Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy
output (P50)×X%

Projected energy
output (P50)*1: Projected energy output (P50) is monthly predicted solar energy output inlease term as described in technical report*2: Y is percentage based on lessee’s operation cost and operator compensation*3: Negative variable rent is regarded as zero

Actual energy output

17

Distribution Policy (Payout Ratio) Distribution policy focusing on payout ratio Cash distributions to our unitholders for each fiscal period are calculated by multiplying the residual free cash flow(“NCF”), which refers to free cash flow (“FCF”) minus debt interest payments, by a payout ratio, which is determinedby us for each fiscal period.

 Distribution in excess of earnings

Expenses ofleasing business

Expenses ofleasing business

Debt interest

Capital expenditure

Debt interest

Total rental
revenues

FCF made by
renewable energy facilities

Use forreinvestment

Debt repayment

Up to 60%of depreciation

Depreciation

Retained earnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×Payout ratio

Cash distribution

Distribution

Distribution inexcess of earnings
Distribution
from profit

Breakdown

Net income

P/L(Note-1) Residual FCF is calculated as free cash flow minus interest payments related to interest-bearing debt and repayments of interest-bearing debt for the relevant fiscal period plus
total amount of net cash flow remaining after deduction of distributions from the preceding fiscal periods.
(Note-2) Our calculation method of payout ratio differs from that of other enterprises (i.e. cash distribution divided by current income).
(Note-3) Under the standards set forth by the Investment Trusts Association, Japan, closed-end infrastructure funds, such as us, may return capital up to 60% of the amount obtainedby deducting the amount of their accumulated depreciation recorded as of the end of the preceding fiscal period from the amount of their accumulated depreciation calculated
as of the end of the relevant fiscal period.
(Note-4) The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the share of our rental revenues orcash distributions in excess of retained earnings. We may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period,
based on a consideration of factors such as economic or renewable energy market conditions or our financial condition, among other factors, after taking into account our
financial situation and alternative uses of cash, such as the execution of repair plans and capital expenditures, the repayment of borrowings and property acquisition
opportunities. We may, in place of making cash distributions in excess of retained earnings, decide to acquire our own units.

18

Green Bond
 Acquisition of JCR’s Green Bond Evaluation
Borrowings executed on October 31, 2017 were assigned the highest-grade evaluation of “Green 1” inJapan Credit Rating Agency (JCR) ’s Green Bond Evaluation on November 22, 2017

Acquisition priceof 13 projects
acquired in IPO
JPY 30.4 Bn

CS Mashiki-machi
Power Plant

Borrowings
JPY 15.7 Bn

Unitholders’equityissued on IPOBankJCR assigned
the highest-grade evaluation
Green1in JCR’s Green Bond Evaluation

19

5. Management Policy

3 rd 4 th & 5 th FP Business Forecast
 Business forecast
3rd Fiscal Period(ending December 2018)

4th Fiscal Period(ending June 2019)

5th Fiscal Period(ending December 2019)

Statement of Income (million yen)
Operating revenue¥1,886¥2,072¥2,154

Operating profit

¥698

¥700

¥781

Ordinary profit

¥416

¥573

¥659

Current net profit

¥415

¥572

¥658

DPU (incl. distributions in excess of earnings)¥3,600¥3,600¥3,600DPU (excl. distributions in excess of earnings)¥1,798¥2,478¥2,849Per unit distributions in excess of earnings¥1,802¥1,122¥751

Congruent with CSIF’s policy to maintain stable levels of distributions,projected DPU for the 3 rd FP (ending Dec. 2018), 4 th FP (ending Jun. 2019) and5 th FP (ending Dec. 2019) is ¥3,600(Note-1) Figures are rounded down to the nearest million yen.
(Note-2) Above forecasts are based on earnings summary dated 14-Aug-2018 and is subject to change due to factors including without limitation, acquisition or sale of renewableenergy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF. Forecasts do not guarantee any
dividend amounts.

21

External Growth Strategy（Sponsor Pipeline）
Achieve ¥100Bn in asset size over the medium term drawing on acquisitions from sponsor pipeline
 Sponsor portfolio snapshot

Operational and underconstruction

FIT purchase price range: ¥32~¥40/kWh(1)By size (per asset)

3

9.9%

8

1

ENR projects (2)228.0MW40円/kWh￥40/kWh

10MW以上50MW未満
10MW~50MW

2MW未満
~2MW

 Map of owned assets and sponsor assets

36円/kWh￥36/kWh
32円/kWh￥32/kWh

62.6％

32円/kWh未満~￥32/kWhCS Gunma Aramaki
CS群馬新牧発電所
Power Plant（19.0ＭＷ）● Operational
稼働済資産●（内、2018年9月
稼働済資産(Assets
acquired as at
公募増資時取得物件は
（
内
、取6
得are
予 定highlighted
資産は
Sept.

CSJ
Oita Power Plant
CSJ大分発電所

CS
Yamaguchi Shinmine
CSJ山口新美祢発電所
Power
Plant
（56.3ＭＷ）(56.3MW)● Under
建設中資産
Construction● Under
開発中資産
Development● Acquired
保有資産 by CSIF

（2.5ＭＷ）(2.5MW)(as at 31-Jul-2018)(as at 31-Jul-2018)

CS Hiji-machi
Power Plant
CS日出町発電所（53.4ＭＷ）(53.4MW) Operational start year and status ofsponsor portfolio assets(1)
（MW）
450

Under

Under

35.8

350
300

134.4

250
200
7.6

150
100
50
0

110.0
稼働済
Operational(2.4MW)

in太枠
boldにて記載）
frame)

CS大山町発電所（A）、

CS Marumori-machi
CS丸森町発電所
Power Plant（2.2ＭＷ）(2.2MW)

CS Daisen-cho
同発電所
Power
Plants （B）(A) & (B)
（27.3ＭＷ）(27.3MW)CS
Koriyama-shi
CS郡山市発電所
Power Plant（0.6ＭＷ）(0.6MW)

CS Takayama-shi PowerCS高山市発電所
Plant（0.9ＭＷ）(0.9MW)

CS Misato-machi
CS美里町発電所
Power
Plant
（1.0ＭＷ）(1.0MW)

CS
Minano-machi
CS皆野町発電所
Power
Plant
（2.4ＭＷ）(2.4MW)

CS CS伊佐市発電所
Isa-shi Power Plant（0.9ＭＷ）(0.9MW)

CS笠間市発電所
CS Kasama-shi
Power Plant

CS Isa-shi Dai-ni
CS伊佐市第二発電所

34.7
53.4

64.2

Power Plant（2.0ＭＷ）(2.0MW)

228.0

110.0
2019年
2019

CS南島原市発電所（東）、CS Minamishimabara-shi
Power同発電所
Plant (East・West)（西）(3.9MW)（3.9ＭＷ）
CS
CSAshikita-machi
北町発電所
Power
Plant
（2.3ＭＷ）(2.3MW)

386.8 MW
212.6

10.8

2018年
Aug.2018~（８月以降）CS Mashiki-machi
CS益城町発電所
Power Plant（47.6ＭＷ）(47.6MW)(as at 31-Jul-2018)

ENR projects
Operational
MW（稼働済）MW（建設中）MW（ENR対象物件）
MW（開発中）construction
development

400

26projects, 386.8MW

21.7％

50MW以上50MW~
5MW以上10MW未満
5MW~10MW
2MW以上5MW未満
2MW~5MW

16projects, 212.6MW

Total sponsor portfolio(1)

5.7%

9

5

10projects, 174.2MW

By FIT price (panel output)

Under development

2020年
2020

2021年以降
2021~

累計
Total

ENR対象物件
ENR
projects(2)
（注9）
（注10）
（注2）

（2.1ＭＷ）

CS
Shizuoka Shuzenji
CS静岡修善寺発電所
Power Plant（10.8ＭＷ）(10.8MW)CS Isa-shi Dai-san
CS伊佐市第三発電所
Power
Plant
（2.2ＭＷ）(2.2MW)

CS Yusui-cho
Power Plant
CS湧水町発電所（1.7ＭＷ）(1.7MW)

CS Shibushi-shi
CS志布志市発電所

CS Tsuyama-shi

CS津山市発電所
Power Plant

CS Kannami-cho
CS函南町発電所
Power Plant

CS Ena-shi
CS恵那市発電所

CS Shizuoka Numazu
CS静岡沼津発電所
Power Plant（1.0ＭＷ）(2.4MW)（1.9ＭＷ）(1.9MW)(2.1MW)

CS笠間市第二発電所
CS Kasama-shi（2.1ＭＷ）
Dai-niPower Plant(2.1MW)（1.3ＭＷ）(1.3MW)

Power Plant
Power Plant（2.1ＭＷ）（1.2ＭＷ）
Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.
(2.1MW)(1.2MW)
Note: (1) Includes the acquired assets from the follow-on offering in September 2018.
(2) Total panel output of ENR projects are based on development plans as of July 31, 2018. Forecasted output and actual output may differ. Licenses and permits for ENR project development may not be completed and there is no assurance
that these projects will reach completion nor be ready for commercial operation. With respect to these ENR projects, CSIF has been granted Exclusive Negotiation Rights from project developers. As at July 31, 2018, the sponsor does notretain ownership of these projects and there is a likelihood that the sponsor will not acquire the project among other reasons. As at July 31, 2018, CSIF does not intend to acquire these projects and there is no assurance that CSIF will acquire
these projects.
(3) The panel output capacity for the solar energy projects under construction and projects under development is based on development plans as of July 31, 2018. Forecasted output and actual output may differ.

22

Characteristics of PV Plant Revenue
 Forecastability of earning stability on a long-term basis
 FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, giventhat our assets-under-management are set up so that we can capture basic rent from the lessee, we assume that any
decline in rent income won’t exceed a certain limit.
 Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the
long-term.
 Dynamics of PV plant revenue during FIT period○ Assuming that we purchase PV projects and do not purchaseadditional assets nor sell them, fluctuations in operating revenue,
operating expenses and non-operating expenses during the FIT
period will follow the general tendencies listed below. Hence, ourunderstanding is that CSIF’s current income will gradually increaseover the medium to long term during the FIT period.

AmountOperatingexpenses

Operatingrevenues○ Operating revenues generally decrease gradually over the medium tolong term due to expected deterioration of PV modules.

○ Operating expenses generally decrease (mainly composed of taxes
Net income

on depreciable assets that are calculated using the straight-line
method) gradually over the medium to long term, under thepresumption that expenses other than taxes on depreciable assets
are largely fixed (including assumed regular maintenance costs).

○ Amortization payments of loan principal and interest rates that are

Non-operating
expensesTime

partially fixed generally cause non-operating expenses to decrease
gradually over the medium to long term given typical amortization
schedules, as these payments are the primary component of nonoperating expenses.

23

Appendix

TSE Listed Infrastructure Fund Market
 History of TSE Infrastructure Fund Market
April 2015

Inception of TSE Infrastructure Fund Market

April 2016

- Under the Act on Special Measures Concerning Taxation, the period of conduit status forinfrastructure funds investing mainly in renewable energy generators was extended from 10 years to
20 years.

- Exceptional rule for renewable energy power generators- Conditional that renewable energy facilities are acquired and ready for lease by March 2017
Infrastructure fund
Conduit status of infrastructure
funds extended from 10 years
to 20 years

Renewable energy
power plant

Debt
EquityJune 2016

IPO of Takara Leben Infrastructure Fund (17.9MW, ¥4.52Bn initial market cap(Note-1))

December
2016

IPO of Ichigo Green Infrastructure Investment Corporation (25.8MW, ¥5.02Bn initial market cap(Note-1))

March 2017

IPO of Renewable Japan Energy Infrastructure Fund, Inc. (21.8 MW, ¥3.78Bn initial market cap(Note-1))

April 2017

Requisite acquisition period for infrastructure funds to invest in renewable energy generators and be
approved conduit tax treatment (for 20 years) was extended three years from March 31, 2017 toMarch 31, 2020

October 2017

IPO of Canadian Solar Infrastructure Fund, Inc.
(72.7MW, ¥17.93Bn market cap(Note-1) as at IPO)

Source: Bloomberg
Note-1: Market cap calculated by multiplying the total issued units on the listing date and the IPO subscription price.

25

Renewable Energy Market in Japan Renewable energy mix and comparable energy self-sufficiency by country At the Paris Climate Change Agreement, Japan pledged to reduce CO emissions by 26% (vs. 2013 levels) by 2030
 Comparable renewable energy mix (2014)

1 Norway
2 Australia
3 Canada

677.4%
235.4%
166.2%

8 U.S.

85.0%

・・

EnglandHydropower

America
Coal

Japan
Oil

LNG

Nuclear

Source: Compiled by the Asset Manager based on the “FY2015 Annual Report on Energy (Energy White Paper
2016)” by METI.
Note: Data on Japan based on the “Summary of Electric Power Development” by METI (FY2014 actuals). Data onother countries based on 2014 estimates and IEA Energy Balance of OECD Countries (2015 edition)

40.1%

27 Spain

25.8%

30 Korea

18.0%

・・・

Renewable energy (excl. hydropower)

France20 Germany
・・・

Spain

60.7%
52.9%

・・・

2 2014: 3.2％
→2016: 7.8％
Germany

14 U.K.
15 France
・・・

2 2014: 23.3％→2016: 27.7％

amongst OECD (2012 estimates)
・・・

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

 Comparable primary energy self-sufficiency

33 Japan
34 Luxembourg

2016:8.4％

6.0%
2.9%
0%

200%

400%

600%

800%

Source: Compiled by the Asset Manager based on Graph 111-1-1 of the FY2013 Annual Report on Energy(Energy White Paper 2014) by METI
Source: Complied by the Asset Manager based on “Energy Balance of OECD Countries 2013” by the IEA.

 Changes in the energy market

 METI projections of future energy mix and medium-long term changes to FIT purchase price Installed solar capacity… METI predicts that solar

energy will comprise 7% of the total 2030 energy mix
80
70
60
50
40
30
20
10
0

64.0

 Trends in FIT purchase price and average system

50

costs of solar energy projects (2012-2017)
42.6

40
30

40

37.7
36

20

31.6

10
0
November
2016
2016年11月

2030
Forecast
2030年度見込値

Source: Compiled by the Asset Manager based on the following: data from METI website, “Long-term Outlook ofEnergy Supply and Demand (July 2015) by METI, “FY2015 Annual Report on Energy (Energy White Paper
2016)” by METI and data from the Federation of Electric Power Companies.
Note: Projection for FY2030 is based on the percentages and installed capacity disclosed in the reports preparedby METI and are not based upon our calculations. There is no guarantee that the projected percentages orcapacity will be realized.

2012
2012年

2013
2013年

FIT
Purchase Price
買取価格（左軸）(Left axis)

34.3
32

32.3

50
40

32.4

30
29

24

21

20
10

0
2014
2015
2016
2017
2014年
2015年
2016年
2017年
Average system cost
10kW以上の太陽光発電設備のシステム費用の平均値（右軸）(Right axis)

Source: Compiled by the Asset Manager based on “Report on Procurement Prices after FY2018 (February 7, 2018)” by
METI.
Note: (1) FIT purchase price for each year based on a period from April to March of the following year and excludes
national and local consumption taxes.
(2) Average system costs are based on the calendar year.

26Renewable Energy Curtailment
Impact of “Output Curtailment” is limited① Thermal power generation is the first to be subject of output controls as it comprises roughly 85% of the current
energy mix. Priority of output controls on solar and wind power is on the lower end of the scale below pumpedstorage hydroelectric power plants, power supply beyond the respective grid using transmission line, and biomass② All CSIF assets as at the end of the 2nd FP is subject to “30-day output control”→ Solar power output of CSIF-owned assets is subject to a maximum of 30-day output curtailment within
the respective year
Order of the sources regulated outputs

00 Regulation of Power Sources Ⅰ (generators and those of pumped storage
secured by general distribution utilities for adjustment) and pumping operation
Regulation of Power Sources Ⅱ (generators and those of pumped storage which
can be controlled by general distribution utilities) and pumping operation

01 Regulation of Power Sources Ⅲ (generators such like thermal power including
woody biomass and those of pumped storage which can’t be controlled by general
distribution utilities) and pumping operation
02 Supplying beyond the Kyushu region using transmission line
03 Regulation of biomass
04 Regulation of biomass using regional resources ※1
05 Regulation of power sources fluctuated by natural factors (Solar and wind)
06 Measures based on Organization for Cross-regional Coordination ofTransmission Operators※２
7 Regulation of long-term fixed power sources (Nuclear, Hydro and geothermal)*1 They will be exempted from restraining output when controlling output is difficult due to technical matters and so on*2 Interchange according to instructions given by Organization for Cross-regional Coordination of Transmission Operators

Source：KYUSHU ELECTRIC POWER CO., INC.

27

Overall Structure Identical structure as a typical J-REIT Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
 Established in June 2016
Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)
 Engaged in construction and operation of solar
energy facilities
 Established in May 2014

Canadian Solar O&M Japan K.K.
Provides O&M services to solar energy facilities
including our currently-owned projects
 Established in June 2016


AssetManagement
Agreement

AssetManager
EquityInterest

SponsorSupportAgreement

Sales of PV modules for use in residential andindustrial solar power systems
 Established in June 2009

Investment
Corporation(Fund)

Investors
EquityLoan
Agreements

Lenders

Sponsor /Operator
O&M Service
Agreement

Solar Energy
Projects
Lease /
Purchase
Agreements

O&M

Landowners

Lease / Operation
Agreement

Canadian Solar Japan K.K.


Distributions

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

28

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in orrecommending transaction of certain products. We request investors to make investments with their own
responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulationsof the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document
includes figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based ondata/index and other information released by third parties. Analysis, judgment and other views of the Asset Manager
on such information at the time of preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty ofsuch information. Analysis, judgment and other non-factual views of the Asset Manager represent views of the AssetManager at this point in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due todifference in the rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors.
Readers are also cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes andother information released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, thesestatements do not guarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

29